South Korea adds to momentum for 2050 carbon neutrality

Market: Coal, Electricity, Emissions, Natural gas, Oil products
28/10/20

South Korea is aiming to achieve carbon neutrality by 2050, including replacing coal-fired power generation with renewable alternatives, President Moon Jae-in said today.

The pledge, which builds on goals laid out in the country's "green new deal" earlier this year, adds to momentum in east Asia to reach net-zero emissions by around the middle of this century. The Japanese government this week said it will target net-zero greenhouse gas emissions by 2050, after China last month pledged to become carbon neutral by 2060.

South Korea "will move forward to aim for carbon neutrality by 2050, by actively responding to climate change with the international community", Moon said in parliament. "We will create new markets, new industries and new jobs by replacing coal power with renewable energy."

Seoul plans to create a low-carbon, green industrial complex, Moon said, although he did not give any further details of how the switch to renewable energy will affect thermal fuels. South Korea is a major importer of LNG and coal and one of Asia's biggest oil refining and petrochemical hubs.

South Korea announced plans in July to invest 73.4 trillion won ($64.7bn) in energy initiatives as part of its "New Deal" programme, which is a W160 trillion package of measures to create 1.9mn jobs over the next five years. The plans include expanding fleets of electric vehicles and hydrogen cars, as well as more than tripling the country's solar and wind power generation capacity to 42.7GW at the end of 2025 from 12.7GW currently.

Moon's comments were welcomed by UN Secretary General Antonio Guterres, who said South Korea "joins a growing group of major economies committed to lead by example in building a sustainable, carbon neutral and climate resilient world by 2050".

By Kevin Foster and Sam Hong

Related news posts

Argus illuminates the markets by putting a lens on the areas that matter most to you. The market news and commentary we publish reveals vital insights that enable you to make stronger, well-informed decisions. Explore a selection of news stories related to this one.

News

22/04/25

Tariff ‘shock’ prompts IMF to cut growth outlook

Washington, 22 April (Argus) — Global economic growth is expected to be significantly lower in 2025-26 than previously anticipated because of the steep tariffs President Donald Trump is pursuing for most imports and the uncertainty his policies are generating, the IMF said. The IMF, in its latest World Economic Outlook released today, forecasts the global economy will grow by 2.8pc in 2025 and 3pc in 2026. That compares with the 3.3pc/yr growth for 2025-26 that the IMF was expecting just three months ago. Today's forecast is based on the tariffs that Trump had in place as of 4 April, before he paused steep tariffs on most countries and escalated tarrifs on China. These barriers had pushed up the effective US tariff rate to levels "not seen in a century", the IMF said. While Trump has altered his tariff levels repeatedly, he has imposed an across-the-board 10pc tariff on most imports, a 25pc tariff on steel and aluminum, a 25pc tariff on some imports from Canada and Mexico, and a 145pc tariff on most imports from China. "This on its own is a major negative shock to growth," the IMF said. "The unpredictability with which these measures have been unfolding also has a negative impact on economic activity and the outlook." IMF forecasts are used by many economists to model oil demand projections. The US and its closest trading partners appear to be among those hardest hit by tariffs and corresponding trade countermeasures. The IMF's baseline scenario forecasts US growth at 1.8pc this year, a decrease of 0.9 percentage points from the forecast the IMF released in January, reflecting higher policy uncertainty, trade tensions and softer demand outlook. Mexico's economy is now projected to shrink by 0.3pc in 2025, rather than grow by 1.4pc, while Canada's growth is forecast at 1.4pc in 2025, down from 2pc. The release of the IMF report comes as Trump has given no indications of a shift in thinking on tariffs, which he says are generating billions of dollars for the US and will prompt companies to relocate their manufacturing capacity to the US. "THE BUSINESSMEN WHO CRITICIZE TARIFFS ARE BAD AT BUSINESS, BUT REALLY BAD AT POLITICS. THEY DON'T UNDERSTAND OR REALIZE THAT I AM THE GREATEST FRIEND THAT AMERICAN CAPITALISM HAS EVER HAD!" Trump wrote on social media on 20 April. The next day, major stock markets indexes declined by more than 2pc, continuing their crash from when Trump began announcing his tariff policies. Trump on 21 April escalated his attacks against US Federal Reserve chair Jerome Powell for failing to lower interest rates as Trump has demanded. There could be a "SLOWING of the economy unless Mr. Too Late" — his nickname for Powell — "a major loser, lowers interest rates, NOW," Trump wrote. The IMF also ratcheted down its expectations for the Chinese economy. China's economy is expected to grow by 4pc/yr in 2025-26, down from the 4.6 and 4.5pc, respectively, the IMF was anticipating in January. The euro area is forecast to grow by 0.8pc in 2025 and 1.2pc in 2026, a decrease of 0.2 percentage points from the IMF's previous forecast. By Chris Knight Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Find out more

News

Coal India, DVC to build 1.6GW of thermal power plants

22/04/25

News

22/04/25

Coal India, DVC to build 1.6GW of thermal power plants

Singapore, 22 April (Argus) — State-owned producer Coal India (CIL) plans to develop 1.6GW of coal-fired power capacity under a joint venture with state-controlled utility Damodar Valley (DVC) to meet rising demand and expand its non-coal revenue. India's top coal producer CIL plans to set up two brownfield thermal power units of 800MW each with DVC in the eastern Indian state of Jharkhand, the company announced on 21 April. The brownfield expansion will be carried out at DVC's 500MW Chandrapura thermal power station. The 50:50 joint venture plans to invest 165bn rupees ($1.94bn) towards the expansion. The expanded capacity will source coal from the regional mines of CIL's subsidiary companies, Bharat Coking Coal and Central Coalfields. The firms did not disclose the timeline for the completion of this expansion. CIL has geared up to construct several super-critical or ultra super-critical pit-head thermal power plants to support the nation's requirement for affordable and reliable energy, the company said in its annual report for the fiscal year ended 31 March 2024. CIL announced plans to set up two brownfield thermal power units of 800MW each with state-owned utility Rajasthan Rajya Vidyut Utpadan Nigam (RRVUNL) at the latter's existing Kalisindh thermal project in the northern Indian state of Rajasthan in September 2024. India's installed thermal capacity stood at 247GW as of 31 March, with coal accounting for 215GW of this, and the rest being lignite, diesel and natural gas, according to data from the country's Central Electricity Authority (CEA). The country's total power capacity stood at 475GW as of 31 March. India plans to raise its electricity generation capacity by more than fourfold over the next two decades to cater to rising domestic demand, although the focus would be on boosting power production from cleaner sources of energy as the country takes steps to cut emissions. New Delhi is aiming to achieve a generation capacity of 2,100GW by 2047, power minister Manohar Lal Khattar said at the launch of National Electricity Plan for power transmission in October 2024. By Ajay Modi Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

News

US offers Trinidad cushion from Vz gas sanctions

21/04/25

News

21/04/25

US offers Trinidad cushion from Vz gas sanctions

Kingston, 21 April (Argus) — Trinidad and Tobago and the US have agreed to seek ways to prevent Washington's sanctions on Venezuela's energy sector from harming the Caribbean country's natural gas production and energy security, both governments said. The administration of President Donald Trump revoked licenses earlier this month that had been granted by former president Joe Biden's government to gas-short Trinidad to develop the Dragon and Cocuina gas fields that straddle the maritime border with Venezuela. "Both sides agreed that we are going to work very closely to find a solution that achieves US objectives regarding Venezuela without harming Trinidad," the US State Department and Trinidad prime minister Stuart Young said. But neither government indicated how Trinidad would find alternative sources of feedstock in the short term to lift output of midstream and downstream products. Young and US secretary of state Marco Rubio discussed Trinidad's concerns in an 18 April telephone conversation, Young's office said. "Any outcomes of sanctions upon the Maduro regime and Venezuela is in no way indicative of our relationship with Trinidad and Tobago and the value we place on it," the state department said. Trinidad regards the cross-border gas fields as future sources of feedstock to counter a fall in domestic output that has suppressed LNG, petrochemicals and fertilizer production. It has struggled to recover gas flow since November 2017, following a long slide from a 4.3 Bcf/d peak in 2010. Trinidad's 2024 natural gas production of 2.53 Bcf/d was 2pc less than in the previous year, according to the latest data from the energy ministry. The US Department of the Treasury's Office of Foreign Assets Control (Ofac) had cleared the way for Trinidad and Venezuela to develop the 4.3 trillion cf Dragon field. Ofac also granted BP and Trinidad's state-owned gas company NGC a license to develop the cross-border Cocuina-Manakin field, which contains at least 1 trillion cf. The Trump administration revoked licenses both this year. By Canute James Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

News

IMO incentive to shape bio-bunker choices: Correction

21/04/25

News

21/04/25

IMO incentive to shape bio-bunker choices: Correction

Corrects B30 pricing in paragraph 5. New York, 21 April (Argus) — An International Maritime Organization (IMO) proposal for ship owners who exceed emissions reduction targets to earn surplus credits will play a key role in biofuel bunkering options going forward. The price of these credits will help determine whether B30 or B100 becomes the preferred bio-bunker fuel for vessels not powered by LNG or methanol. It will also influence whether biofuel adoption is accelerated or delayed beyond 2032. At the conclusion of its meeting earlier this month the IMO proposed a dual-incentive mechanism to curb marine GHG emissions starting in 2028. The system combines penalties for non-compliance with financial incentives for over-compliance, aiming to shift ship owner behavior through both "stick" and "carrot" measures. As the "carrot", ship owners whose emissions fall below the IMO's stricter compliance target will receive surplus credits, which can be traded on the open market. The "stick" will introduce a two-tier penalty system. If emissions fall between the base and direct GHG emissions tiers, vessel operators will pay a fixed penalty of $100/t CO2-equivalent. Ship owners whose emissions exceed the looser, tier 2, base target will incur a penalty of $380/t CO2e. Both tiers tighten annually through 2035. The overcompliance credits will be traded on the open market. It is unlikely that they will exceed the cost of the tier 2 penalty of $380/t CO2e. Argus modeled two surplus credit price scenarios — $70/t and $250/t CO2e — to assess their impact on bunker fuel economics. Assessments from 10-17 April showed Singapore very low-sulphur fuel oil (VLSFO) at $481/t, Singapore B30 at $740/t, and Chinese used cooking oil methyl ester (Ucome), or B100, at $1,143/t (see charts). If the outright prices remain flat, in both scenarios, VLSFO would incur tier 1 and tier 2 penalties, raising its effective cost to around $563/t in 2028. B30 in both scenarios would receive credits putting its price at $653/t and $715/t respectively. In the high surplus credit scenario, B100 would earn roughly $580/t in credits, bringing its net cost to about $563/t, on par with VLSFO, and more competitive than B30. In the low surplus credit scenario, B100 would earn just $162/t in credits, lowering its cost to approximately $980/t, well above VLSFO. At these spot prices, and $250/t CO2e surplus credit, B100 would remain the cheapest fuel option through 2035. At $70/t CO2e surplus credit, B30 becomes cost-competitive with VLSFO only after 2032. Ultimately, the market value of IMO over-compliance credits will be a major factor in determining the timing and extent of global biofuel adoption in the marine sector. By Stefka Wechsler Scenario 1, $70/t surplus credit $/t Scenario 2, $250/t surplus credit $/t Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

News

Washington seeks input on GHG market changes

21/04/25

News

21/04/25

Washington seeks input on GHG market changes

Houston, 21 April (Argus) — Washington regulators are moving forward with a slew of potential changes to the state's "cap-and-invest" program through a pair of draft rules, despite ongoing uncertainty around new program mechanics under discussion in the California-Quebec carbon market. The Department of Ecology opened public comment for the two draft rules on 16 April for the revised carbon market linkage rulemaking it kicked off in March . The draft language builds on changes required by SB 6058 , which lawmakers passed last year at the request of Ecology, to smooth out any incompatibility between the state's program and the larger California-Quebec market, known as the Western Climate Initiative (WCI). In line with legislation, the agency is proposing to shift the program's greenhouse gas (GHG) emissions exemption for biomass-derived fuels to 35pc lower lifecycle emissions — down from 40pc — than the comparable petroleum fuels, allow the use of another jurisdiction's carbon offsets issued after July 2019 for compliance, and lower the allowance holding limits for general participants in a linked market. Ecology is proposing other changes required by the law, such as accounting for emissions from imported electricity. Changes Ecology is proposing that are not required by SB 6058 include accounting for the combined total allowances between all three jurisdictions in the program's holding limit formulas and adding quarterly future vintage allowance auctions in line with the WCI. Ecology began pursuit of linking with the WCI in 2023 , the first year of the Washington's program. While the agency continues to move forward on linkage-related due diligence required by state law, some program changes needed to join the WCI market, such as aligning program compliance periods and corporate affiliation group disclosures, must wait for guidance from California and Quebec. Ongoing work by the current WCI members to update their respective regulations has run into a series of delays . One potential change California Air Resources Board staff floated in April 2024 is aligning the end of each compliance cycle with the program's emissions reduction targets in 2030, 2035, 2040 and 2045, rather than the current three-year compliance cycle. But the agency has largely been silent on the issue since, including in its most recent market notice on planned changes in October 2024. Washington's "cap-and-invest" program aims to cut GHG emissions by 45pc by 2030, compared with 1990 levels, and to achieve net-zero emissions by 2050. The program covers industrial facilities, natural gas suppliers, power plants and other fuel suppliers with GHG emissions of at least 25,000 t/yr. Ecology is requesting public comment on the draft language through 16 May. By Denise Cathey Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Business intelligence reports

Get concise, trustworthy and unbiased analysis of the latest trends and developments in oil and energy markets. These reports are specially created for decision makers who don’t have time to track markets day-by-day, minute-by-minute.

Learn more